The principle of self-determination relates to statehood by asserting the right of peoples to determine their own political status and pursue their economic, social, and cultural development. It supports the notion that communities should have the ability to freely choose their governance and autonomy. This principle plays a significant role in fostering independence movements and can lead to the formation of new states. However, it can also create tensions between existing states and minority groups seeking self-determination, as issues of sovereignty and territorial integrity come into play.